Company Number: 13063270

Analysis Date: 2025-07-20 12:15 UTC

1. Risk Rating: HIGH

Justification: The company exhibits persistent negative net assets and net current liabilities across multiple years, signaling solvency and liquidity risks. The fixed asset base is entirely offset by creditors due within one year, resulting in negative working capital and shareholder funds, which raises concerns about the company’s ability to meet its short-term obligations and sustain operations without external support.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company has consistently reported net liabilities (-£22,370 in 2023) and significant negative net current assets (-£328,111 in 2023), indicating an inability to cover current liabilities with current assets.
• Absence of Employees and Profit & Loss Details: The company reports zero employees and has not filed a profit and loss account, limiting transparency about operational performance and cash flow generation.
• Dependence on Fixed Assets Without Clear Liquidity: Fixed assets remain constant at £306,521, but given the negative working capital and net liabilities, it is unclear if these assets are liquid or generating revenue to support debt servicing.

3. Positive Indicators:

• Timely Filing Compliance: The company is up to date with its accounts and confirmation statement filings, demonstrating regulatory compliance.
• Stable Director Team: The same three directors have been in place since incorporation, potentially indicating management stability.
• Micro-Entity Reporting: Filing under micro-entity provisions reduces administrative burdens, possibly reflecting a small-scale operation with controlled costs.

4. Due Diligence Notes:

• Examine Cash Flow and Debt Structure: Investigate the nature of current liabilities totaling over £385k to understand repayment terms, creditor relationships, and any potential refinancing or guarantees.
• Assess Fixed Assets Quality and Liquidity: Determine what constitutes the £306k fixed assets and whether these can be leveraged or sold if needed.
• Obtain Profit & Loss and Cash Flow Statements: Since these are not publicly filed, request internal financial data to evaluate operational sustainability and revenue generation.
• Review Director Backgrounds and Related Party Transactions: Confirm no conflicts of interest or director conduct issues that may affect governance or financial health.